The Department of Energy and Climate Change today published plans for a scheme to incentivise renewable heat generation at all scales. The Renewable heat incentive scheme (RHI) will be a world first.

The RHI will come into effect in April 2011 and guarantee payments for those who install technologies such as ground source heat pumps, solar thermal hot water systems, biomass boilers and air source heat pumps.

Under the proposed tariffs the installation of a ground source heat pump in an average semi-detached house with adequate insulation levels could be rewarded with £1,000 a year and lead to savings of £200 per year if used instead of heating oil.

The heat incentive could help thousands of consumers who are off the gas network lower their fuel bills and gain a cash reward for greening their heating supply.
Details of funding for the scheme will be published in the Budget 2010.

The renewable heat incentive will start operating in April 2011. Ofgem will be responsible for making payments direct to large heat generators.

The consultation on the proposed renewable heat incentive financial support scheme opens on 1 February 2010, will run for 12 weeks

Tariff levels for Renewable Heat Incentives:

• Ground Source Heat Pumps up to 45kW = 7p per kWh.
(Tariff lifetime = 23yrs)
• Ground Source Heat Pumps from 45kW – 350kW = 5.5p per kWh.
(Tariff lifetime = 20yrs)
• Ground Source Heat Pumps from 350kW and above = 1.5p per kWh.
(Tariff lifetime = 20yrs)

• Air Source Heat Pumps up to 45kW = 7.5p per kWh.
(Tariff lifetime = 18yrs)
• Air Source Heat Pumps from 45kW – 350kW = 2p per kWh.
(Tariff lifetime = 20yrs)

• Solar Thermal up to 20kW = 18p per kWh.
(Tariff lifetime = 20yrs)
• Solar Thermal from 20kW – 100kW = 17p per kWh.
(Tariff lifetime = 20yrs)

• Solid Biomass up to 45kW = 9p per kWh.
(Tariff lifetime = 15yrs)
• Solid Biomass from 45kW – 500kW = 6.5p per kWh.
(Tariff lifetime = 15yrs)
• Solid Biomass from 500kW and above = 1.6 - 2.5p per kWh.
(Tariff lifetime = 15yrs)

Current figures for renewables:

The UK currently gets around 5.5% of electricity from renewable sources and that will need to increase to around 30% to meet the 15% 2020 target for all energy.

Modelling show that small scale renewable installations could meet 2% of electricity demand in 2020.

The UK currently gets less than 1% of heat from renewable sources. This will need to rise to around 12% in order to meet the 15% 2020 target for all energy.